Friday, December 24, 2010

Taxpayers Have Rights!

Many people may not realize that while the Canada Revenue Agency has a lot of power to get you to pay your taxes, you have power too! There is a Taxpayer Bill of Rights that states what your rights are as a taxpayer.

For instance, you have a right to object to a reassessment. If you do not agree with changes made to your personal or corporate return, you can file a Notice of Objection explaining why you object to the changes on the reassessment.

You also have a right to a formal review and appeal. Your final answer is not necessary the first one you get. If you do not agree with the result of the review, apply for an appeal.

If the CRA does make an error that causes you to end up owing interest and penalties, you can apply for Taxpayer Relief which will refund you for interest and penalties paid that arose from a CRA error.

As a taxpayer you also have the right to not pay income taxes that are in dispute until a partial review occurs. However, the interest on the balance owing will still continue to accrue.

If somehow you feel you were not treated in a professional, courteous or fair manner by the CRA, whether it be your auditor, collections officer, etc; there is a formal complaint process in place to deal with these types of matters.

You also have the right to have another individual represent you with matters regarding the CRA. By filling out a simple form, an authorized individual, such as your accountant, we can become your agent and discuss all matters on your behalf with the government.

And finally, the CRA does not get to enter your house without your consent! Many people who are audited assume that when the CRA asks for the audit to take place at their residence that there is no choice in the matter. This is not the case.

To view all fifteen rights included in the Taxpayer Bill of Rights, visit the CRA website at www.cra-arc.gc.ca

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